Commercial insurance protects a business owner against losses resulting from unforeseen circumstances. There are three general classes: property insurance, which would protect against such things as a business owner's building being damaged in a fire; liability insurance, which would protect the business owner in the event of negligence or malpractice; and workers' compensation, which would provide compensation to employees in the event that they are injured on the job. What follows are examples of some of the more common types of business insurance.

Business Interruption Insurance

If your business is forced to shut down temporarily because of unforeseen circumstances such as a fire, a business interruption policy would reimburse you for lost profits and income, and it would also provide funds to pay employee salaries.

Inland Marine Insurance

This type of coverage would compensate others for damage to their property while it is in your possession. For example, if you owned a computer repair store and customers' computer equipment became damaged as a result of a covered event, this coverage would reimburse them for their loss.

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Builder's Risk Insurance

This coverage would protect you against damage caused while property is being built for business purposes. It is commonly seen in the area of building contracting where the builder of an apartment complex wants to guard against damages while the complex is under construction.

Errors and Omissions Insurance

This is used to protect against liability for a professional who is negligent in the course of his job. For example, if you are an insurance agent who fails to offer a particular coverage and the insured suffered a loss that would have been covered had it been offered, E & O insurance would protect you in the event of a lawsuit.

Malpractice Insurance

Similar to errors and omissions, malpractice insurance protects certain types of professionals if it is determined that they have rendered service that is considered less than the normal standard. Doctors, dentists and accountants commonly have malpractice insurance.

Automobile Insurance

Auto insurance protects against damages that may be caused during the operation of a vehicle that is used in the course of your business. For example, if you are a florist and one of your employees is involved in an accident while making a delivery while driving your company van, your commercial auto insurance would provide coverage.

Workers' Compensation

Workers' compensation insurance provides coverage in the event that one of your employees is injured during the course of the job. In many states, it will prevent the employee from pursuing a lawsuit against you or your business.